Uber Stock Surges 8.5% After Q1 Earnings Miss as Second-Quarter Bookings Guidance Tops Estimates

Uber Technologies posted first-quarter revenue of $13.2 billion on Wednesday, falling just short of the $13.29 billion analysts had expected, but a stronger-than-anticipated bookings outlook for the current quarter sent shares surging as much as 8.5% in premarket trading.

The company's second-quarter gross bookings guidance of $56.25 billion to $57.75 billion cleared the Wall Street consensus of $56.17 billion, signaling continued momentum despite a challenging macroeconomic backdrop.

Gross bookings in the first quarter rose 25% to $53.7 billion, beating the average analyst estimate of $52.8 billion, according to figures compiled by LSEG. The company reported 3.6 billion trips during the quarter.

On a GAAP basis, earnings per share came in at 13 cents, well below the 70-cent estimate. On a non-GAAP basis, earnings per share reached 72 cents. Net income fell to $263 million from $1.78 billion a year earlier, largely due to a $1.5 billion hit from the revaluation of equity investments in Didi and Grab, both based in Asia.

Revenue grew 14% from $11.5 billion in the same period last year. The delivery segment led the way, with revenue climbing 34% to $5.07 billion from $3.78 billion a year earlier — topping the average analyst estimate of $4.89 billion, according to StreetAccount. The company attributed the strong delivery performance to growth in Australia, Japan, and the United Kingdom.

The mobility, or ride-hailing, division was the source of the revenue miss. Sales in that segment rose 5% to $6.8 billion, against the $7.11 billion analysts had expected, according to StreetAccount.

CEO Dara Khosrowshahi cited a "complex macro backdrop marked by weather disruptions, geopolitical tensions, and gas price volatility" in prepared remarks ahead of the earnings call. Since the United States began combat operations in Iran in February, the national average price for regular gasoline has climbed to $4.54 a gallon — a roughly 52% increase, according to AAA data. Diesel prices have similarly risen to $5.67 a gallon, up about 51% over the same period.

Despite the fuel cost pressures, Khosrowshahi told analysts that consumer behavior on the platform has remained resilient. "We watched consumer patterns really closely. Are people taking shorter trips? Are people trading down in terms of the size of their grocery basket, so to speak? With the kinds of restaurants that they're eating at, are consumers tipping as much as they were? All of those indicators continue to be really strong," he said on CNBC's "Squawk Box." "The consumers are spending, they're spending locally, and we don't see any signs of that weakening at this point."

In late March, the company announced fuel discounts and other driver incentives set to run through nearly the end of May, a direct response to the higher pump prices that fall on drivers — who cover their own fuel costs.

Khosrowshahi said Uber's mobility business accelerated faster than the overall business, and he expects that trend to continue as the company targets Waymo autonomous vehicle services across 15 cities by the end of 2026. Uber has plans to purchase autonomous vehicles from partners including Waabi, Wayve, Rivian, and Nuro once those vehicles are validated for driverless operation. The company is also selling services such as custom insurance, operations and maintenance, and training data to the broader AV industry.

On the artificial intelligence front, the company said 95% of its engineers now use AI coding tools monthly, with more than 10% of the company's code now written autonomously by AI coding agents. Khosrowshahi added that AI-driven personalization algorithms can now predict three-quarters of the rides on the platform.

Uber's platform now counts more than 10 million earners globally, including drivers and delivery workers. The company said it is moderating hiring as AI tools improve engineering productivity internally.

With consumer spending holding steady and autonomous vehicle partnerships expanding, Uber enters the second quarter facing rising fuel costs and geopolitical uncertainty — but with a guidance range that suggests its leadership expects demand to remain durable through the summer.

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